SEC Plans Innovation Exemption for Tokenized Stock Trading

The US Securities and Exchange Commission (SEC) is preparing an innovation exemption to allow tokenised stocks to trade on blockchain networks. Tokenised stocks are digital versions of publicly traded securities. Ownership records for these instruments are maintained on a blockchain — a distributed digital ledger — instead of a traditional database. The exemption would create a formal regulatory path for this activity inside US markets.

January 2026 guidance defined the framework scopeOn 28 January 2026, the SEC's divisions of Corporate Finance, Trading and Markets, and Investment Management issued joint guidance on tokenised securities. The guidance defined tokenised securities as financial instruments classified as securities under federal law but represented as crypto assets on digital networks. The document confirmed that existing US securities laws apply in full to tokenised instruments. The innovation exemption is a separate instrument from this guidance and would address the trading mechanism specifically.

"We are on the cusp of releasing an 'innovation exemption' to begin facilitating the trading of tokenized securities onchain.", 21 April 2026. — Paul Atkins, Chair, U.S. Securities and Exchange Commission

Trump administration positions exemption as crypto reformThe innovation exemption forms part of a broader policy shift under SEC Chair Paul Atkins, appointed under President Donald Trump. Atkins framed the initiative as a departure from the enforcement-heavy approach of the previous administration. The SEC labelled this direction "Project Crypto." The exemption does not remove existing investor protections under federal securities law, according to the SEC's January 2026 joint guidance. Trump administration positions exemption as crypto reformThe innovation exemption forms part of a broader policy shift under SEC Chair Paul Atkins, appointed under President Donald Trump. Atkins framed the initiative as a departure from the enforcement-heavy approach of the previous administration. The SEC labelled this direction "Project Crypto." The exemption does not remove existing investor protections under federal securities law, according to the SEC's January 2026 joint guidance. The innovation exemption forms part of a broader policy shift under SEC Chair Paul Atkins, appointed under President Donald Trump. Atkins framed the initiative as a departure from the enforcement-heavy approach of the previous administration. The SEC labelled this direction "Project Crypto." The exemption does not remove existing investor protections under federal securities law, according to the SEC's January 2026 joint guidance. Cryptocurrencies are highly volatile and involve significant risk. You may lose part or all of your investment. All information on Coinpaprika is provided for informational purposes only and does not constitute financial or investment advice. Always conduct your own research (DYOR) and consult a qualified financial advisor before making investment decisions. Coinpaprika is not liable for any losses resulting from the use of this information.